Auto enrolment – so far so good?

27 October 2016
The recent report from the PPI (Pensions Policy Institute) demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report.

Auto enrolment in numbers

Almost 7 million people are now enrolled in a company pension

By 2030 membership of DC schemes could reach 14.7 million

Assets in DC schemes could almost double by 2030 to £612 billion

NEST has the highest opt out rates at 12%  Opt out rates are highest among smaller employers 17%

Sources: Pensions Policy Institute, The Future Book: Unravelling workplace pensions 2016 Edition

What have we learned?

More people are saving than ever before, less people are opting out than expected and opt in rates are as high as 14%. Now’s not the time to relax however. With around half a million small employers still to stage over the next eighteen months, the industry (and in particular the larger master trusts) will face unprecedented numbers of employers looking for help. Threats to the success of auto enrolment also need to be addressed - the new Lifetime ISA and adequate contribution rates are just two of these threats.

That said, it’s fair to say that looking at the figures from the PPI and TPR, it’s difficult to argue that that auto-enrolment hasn’t been an unmitigated success so far.

Source: TPR Declaration of compliance report July 2012- end September 2016, published October 2016. 

Last updated: 27 Oct 2016

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